Stroke Of Governor’s Pen To Reshuffle Whole Mass Cannabis Industry

People can already purchase up to two ounces, but new possession limit is just one of many major changes

We have known for several weeks that Massachusetts had significant changes coming to its cannabis industry. And with the pen stroke of Gov. Maura Healey on Sunday, the Act Modernizing the Commonwealth’s Cannabis Laws has gone into effect. 

The certain impact of this multi-part legislation is immeasurable. The law includes an emergency preamble, meaning that certain key provisions must be implemented within 30 days. We suspect that some of these developments will result in a net positive, like the doubling of purchase and possession limits; stores across the commonwealth were actually able to start selling more than an ounce right after Healey signed the bill, ahead of 4/20. 

There will also probably be fallout. As we noted last week, the current Cannabis Control Commission, which will be broken up and restructured with the changes, has actually been making progress on multiple fronts. For now, though, here’s a simple breakdown of what’s coming, along with some initial reactions.

What the new measure includes

Restructuring the Cannabis Control Commission

• Streamlines and Strengthens the Commission. To increase accountability, the legislation shrinks the size of the commission from five commissioners to three commissioners and consolidates appointment authority to the Governor. Previously, the Governor, Treasurer, and Attorney General of the Commonwealth each were responsible for appointing commissioners. The legislation requires that one commissioner have a background in social justice, and the other two commissioners must have backgrounds in public health, public safety, social justice, consumer regulations, or the production and distribution of marijuana or marijuana products.
• Clarifies Leadership Responsibilities. The bill designates the Chair of the commission as responsible for personnel and administrative matters and clarifies that the Executive Director reports directly to the Chair of the commission.

Boosting Public Accountability Requirements

• Creates a Portal for Illegal Conduct. The bill directs the CCC to launch an online portal where individuals can anonymously report suspected illegal activity by licensed cannabis operators.
• Reports on Public Health and Excise Tax. The bill requires the CCC to prepare new reports regarding the public health impacts of cannabis and the cannabis excise tax rate.
• Studies Workplace Safety and Cannabis Testing. The bill requires the CCC to review current regulations around workplace safety and cannabis testing to ensure that current Massachusetts regulations reflect the most up-to-date standards.

Modernizing License Caps

• Raises the Limit on Licenses. The bill encourages cannabis business ownership and economic development by allowing licensees to hold six licenses, an increase from the current limit of three. By increasing the cap, business owners are able to spread overhead costs across more stores. Businesses that are not social equity businesses will be limited to five licenses in the first twelve months.
• Increases Equity Threshold. The bill provides added flexibility by raising the threshold — from 10 per cent to 20 per cent — of how much equity in a business is considered ownership for the purpose of counting toward the cap on number of licenses someone can hold.
• Encourages Responsible Business Practices. Creates a list of “delinquent” cannabis businesses that have not paid their debts to other cannabis businesses for more than 60 days and prevents others from doing business with those on the delinquent list until they have paid off their debts.
• Creates Flexibility to Foster Small Businesses. The legislation removes the current requirement that medical marijuana operators must be vertically integrated to simultaneously cultivate, manufacture, and sell cannabis. Eliminating this cumbersome and costly requirement creates more possibilities for smaller businesses. The bill limits new medical marijuana establishment licenses to Social Equity Businesses on an exclusive basis for two years.

Expanding Safe and Legal Access to Cannabis

• Increases Purchase and Possession Limits. The bill responsibly increases the amount of cannabis that an adult can purchase or possess in Massachusetts for recreational use, from one ounce to two ounces. The CCC will be tasked with determining how much cannabis concentrate is equivalent to two ounces. Further, for people under 21 years old, the bill increases the threshold — from two ounces to three ounces — that would incur a civil penalty or require participation in a drug awareness program for those under 18.
• Clarifies Delivery Rules. The bill specifies that licensed marijuana delivery businesses can deliver to any municipality unless that municipality prohibits marijuana businesses and opts out of the delivery program.
• Opens the Door to Advertising Inside Cannabis Establishments. The bill gives the commission the ability to allow retailers to advertise sales, discounts, and customer loyalty programs inside the store and via opt-in email, which are currently not permitted.

Streamlining Regulations for Producers

• Clarifies Enforcement on the Sale of Seeds. To eliminate restrictions on sales and to ensure consistency in the market, the legislation clarifies that cannabis seeds do not fall under the definition of marijuana.
• Explores Regulation of Hemp and Cannabinoids. To address unregulated sales of hemp-infused products and cannabinoids, the bill directs the CCC to study the issue and develop recommendations for how Massachusetts can regulate these products.

Cannabis Control Commission response

Below is the response statement of the CCC, published in full:

Following the Governor’s signing of a new cannabis law on April 19, the Massachusetts Cannabis Control Commission (Commission) will continue its mission of regulating a safe, effective, and equitable cannabis marketplace as it tackles new legislative mandates.

As the new law, An Act Modernizing the Commonwealth’s Cannabis Laws, takes immediate effect, the Governor is charged with appointing three Commissioners to lead the agency within the next 30 days. Other statutory changes will update how the regulated industry operates by increasing cannabis possession limits, expanding the potential for adult-use delivery service to the entire Commonwealth, lifting retail license caps, and ending the vertical integration requirement for medical marijuana licensees, among other critical reforms.

“During this transition, the organization will remain focused on its primary mission of regulating a safe, equitable cannabis industry for consumers, patients, business leaders, and taxpayers in Massachusetts,” Executive Director Travis Ahern said. “The Commission has capably integrated legislative changes before, such as with the extensive Chapter 180 reforms, and we will do the same now as we enter a new era as an agency while working with the Governor to implement the legislative intent of this bill.”

During the transition between board appointments, the Commission will continue to work on ongoing initiatives including:

• Building internal infrastructure to offer three new Social Consumption Establishment license types, and executing a counterpart public awareness campaign to ensure health and safety;
• Assessing current market conditions as part of a temporary cultivation licensing freeze approved by Commissioners (3-1) to take effect June 16; 
• Launching the agency’s first job fair through the EquityWorks Career Hub on May 20; and on the first round of cannabis testing protocol reforms as part of a wider standardization effort that includes continuing to operate the agency’s standing, internal Testing Task Force and increasing public insight into Independent Testing Laboratory test results and Certificates of Analysis.

The Commission will also continue day-to-day oversight of the state’s growing cannabis industry, including conducting license application intake and inspections to ensure industry compliance,  reviewing Host Community Agreements, providing licensees with notices to commence operations, administering the Medical Use of Marijuana Program and continuing to register and renew Patients and Caregivers, managing equity programming and technical assistance, conducting research, tracking industry data, and more.

As of April 1, the agency was overseeing nearly 800 active medical and adult-use licenses of all types, ranging from Medical Marijuana Treatment Centers and Marijuana Retailers to Independent Testing Laboratories (ITLs). The Commission collected nearly $20 million in fine and fee revenues for the Commonwealth in fiscal year 2025 alone, on top of $290 million in revenue generated by adult-use cannabis sales and excise taxes. Most of the fee and tax revenue generated by the cannabis industry supports the state Bureau of Addition and Recovery Services (BSAS), municipal police training, the Prevention and Wellness Trust Fund, and appropriations supporting the MBTA and public-school building projects.

Subject to obtaining necessary supplemental funding to incorporate new mandates, the legislation calls on the Commission to undertake several new efforts, such as:

• Updating internal systems, including the state’s seed-to-sale tracking system of record, Metrc, to allow adult consumers’ daily purchase limits to increase from one to two ounces;
• Facilitating adult-use cannabis delivery to cities and towns that do not otherwise have zoning for Marijuana Establishments, following the Commission’s extension of a carve-out for equity delivery businesses last month;
• Authorizing licensees to begin advertising sales and discounts; and
• Accepting new Marijuana Retailer license applications and changes of ownership as the law’s retail cap increases from three to six.

Longer term initiatives include the need for the Commission to rewrite regulations to intake new license applications and transfers—anticipated by the removal of the medical marijuana vertical integration requirement and carve out for Social Equity Businesses, the creation of a “delinquent” licensees list to identify those that have not paid their debts to other businesses for more than 60 days, clarifying how cannabis seeds can be bought and sold, and reviewing current policies around workplace safety and testing.

The Commission’s Research Department will also be tasked with prioritizing new requirements to provide reports on the 10.75% cannabis excise tax, unregulated sales of hemp-infused products, and public health, alongside ongoing research projects.

Additionally, the legislation requires the Commission to create an online portal to accept reports of illegal conduct. Work on a Commission tipline to intake such complaints has been underway and will expand to include an online component.

The Commission is also preparing for the arrival of the three Commissioners who will be appointed by the Governor. Under the new law, one member will be required to have expertise in social justice, while the two other members must have expertise in social justice, public health, public safety, regulation of business, consumer commodities, and/or the production and distribution of marijuana products.

Industry responds to new bill

Cannabis attorney Adrienne Dean released a statement breaking down some of the nuances in the new law. Among the items that she noted:

• “Rather than 5 Commissioners, there will be three – 1 chair and two others. The law states that at least one Commissioners must be from a different political party than the others – most likely, this will be 2 dems and 1 republican. While there is still speculation as to whom these three commissioners will be, there is widespread consensus that Chair [Shannon] O’Brien will not be one of them.”
• Regarding the increased purchase limits, “Now stores can sell up to 2 oz of flower, 10g of concentrate and 1,000mg of THC edibles during a single transaction.”
• As for “No towns,” “delivery is now allowed to municipalities that voted against retail cannabis stores. However, municipalities may opt-out for a two-year period by filing a form with the CCC.”
• And regarding regulatory oversight and worker safety, “The Commission must create an online portal for anonymous complaints for suspected violations of the regs, including [the law] which requires cannabis businesses to create and follow policies and procedures that ‘promote workplace safety consistent with the standards set forth under OSHA’ as well as [the law] which requires cannabis businesses to ‘furnish a place of employment free from recognized hazards that are causing or likely to cause death or serious physical harm to its employees.’”

Moving forward, we will cover every aspect of the new bill and how it impacts all stakeholders, from ancillary operators to medical patients. We will especially pay attention to big companies that absorb smaller ones as a result of new permissions that enable large-scale buyouts. In a statement about the bill, Equitable Opportunities Now Deputy Director Kevin Gilnack noted the mixed reaction.

“Equitable Opportunities Now is grateful to Speaker Ronald Mariano, Senate President Karen Spilka, Chairs Rep. Dan Donahue and Sen. Adam Gómez, the conference committee, and legislators in both chambers for their continued focus on strengthening Massachusetts’ cannabis industry and advancing equitable economic opportunity,” Gilnack said. “We especially appreciate Senator Liz Miranda’s tireless leadership on behalf of social equity businesses, including championing key provisions like the anonymous reporting portal, ownership compliance audit, and expanded delivery access.”

The EON Deputy Director added: “New accountability tools, expanded delivery opportunities, and exclusivity periods for new medical licenses and sixth retail licenses reflect that legislators heard the concerns of social equity businesses and made a clear effort to maintain their commitment to repairing the harms of the war on drugs.

“At the same time, the conference agreement introduces significant changes that warrant careful attention. Doubling ownership limits from three to six licenses and raising the ownership threshold from 10 percent to 20 percent may accelerate consolidation and put added pressure on independent and equity-owned businesses.”